A Marketing Plan For Lipton Ice Tea Marketing Essay

A commercialiseing final cause For Lipton frappe afternoon afternoon afternoon teatime leaf marketing EssayIn 2005, the tea leaftimetimetime fabrication impacted the $1.7 billion category and it is expected to continue ontogeny indefinitely (Mintel 2005). Market analysts believe the tea industry entrust continue to boom and is non expected to reach saturation level in the near future. The fortunate movement in the tea industry apprise be attributed to 2 major factors a) consumers deficiency for wash room and time-saving serv sparklers and b) the constructive press habituated to tea.Ameri smoke lifestyle and work habits have made convenience a necessity. As employers demand for wareivity from their employees, consumers argon to a greater extent pressed for time. In addition, the shaky economy has made Ameri apprizes fear for their jobs thus, any product that can fill the consumers need for convenience and speed atomic number 18 almost mechanically embraced into theAmerican lifestyle (Mintel 2005).For the last decade, the health benefits of tea have gained round-eyed coverage in the media. Studies continue to show the beneficial properties of teas, with health benefits ranging from lower berth cholesterol levels to improve arterial health and decreasing chance of cancer. This positive press has definitely catapulted the demand for tea (Mintel 2005).Both the need for convenience and positive press on tea have spurred an increase in gross revenue of tea products, specifically ready-to-drink (RTD) teas sold in single-serve containers (Mintel 2005). Recognizing this trend, various companies in the tea industry have keep discomfit up with innovational products to collect advantage of the booming grocery for ready-to-drink teas. Lipton tea, one of the global leaders in refreshment brands, launched current products to meet the growing the need for ready-to drink teas and introduced innovative product line to capture the health- sensible foodstuff.For over a century, Lipton has been dominate the sphere tea foodstuff with the societys tea-based drinks including leaf tea, infusions and ready-to-drink tea. Its success has been attributed to the firms strong condense on innovation and the expertise of its tea specialists- professionals in tea-growing, appreciation, buying, blending and RD teams (Wikipedia 2007). iodine of the main driving forces for Liptons success is the companys source of tea. Lipton teas are sourced from various plantations in well-know tea-producing countries such as India, Indonesia, Kenya and Sri Lanka. It maintains specialized tasting rooms in septet regional located across the globe. Presently, Lipton has well-nigh 30 different tea blends (Wikipedia 2007).As Lipton is a part of the Unilever global consortium, the company ensures that its tea producing farms do non only yield high-quality product but also comfort and improve the natural environment and livelihood of workers and local co mmunities. Liptons plantations in eastern Africa have been working with third party estates to ensure compliance with Unilevers sustainable agriculture guidelines and the Ethical tea leaf Partnership criteria (Wikipedia 2007).As part of Lipton teas fag to capture the booming market for ready-to-drink teas, the Anglo-Dutch Unilever Company entered into a joystick reason with American PepsiCo in 2003. Through the joint venture agreement, PepsiCo distributes or markets Lipton tea products, specifically Lipton frappe Tea in more than 60 countries where PepsiCo has schematic its corporate presence (Wikipedia 2007). The 50-50 JV Pepsi Lipton International is the latest move in Unilevers Path to Growth strategy which has mostly involved the disposal of non-corebusinesses sort of than support for existing brands (Unilever-PepsiCo 2003).In a press statement, Unilever announced that the joint agreement with PepsiCo has two main goals to move the Lipton brand into new scattering cha nnels and into new markets. While Unilever claims that Lipton is the leader in the 16-billion liter world market for ready-to-drink tea, its presence remains slim in a number of key markets thus, the agreement withPepsiCo is expected to address such impact (Unilever-PepsiCo 2003).Unilever stated that the 50-50 JV Pepsi Lipton International will target the white space markets where Lipton has no current presence and it is anticipated that significant business opportunities will arise from the key high-potential markets where Pepsi is already strong (Unilever-PepsiCo 2003).PepsiCo is expected to build the sales of the Lipton screwball tea in 60 countries including Brazil, Spain, Greece, Poland, Czech Republic, Slovakia, Hungary, Albania, Romania, Thailand, Singapore, Vietnam, Australia, Turkey, Egypt, Saudi and the sextette Gulf States.The Pepsi Lipton International venture is a logical expansion of an previous collaboration between the two companies. The Pepsi Lipton Tea Partne rship was set up by the two companies some 10 years ago to din sales in the North American market, and is now firmly open as the leading RTD tea player in both the linked States and Canada. With the aim of achieving a similar level of market dominance in the rest of the world, the latest joint venture will aim to leverage the strengths of both parents. It will principally sell ready-to-drink tea concentrate to liberty bottlefulrs for distribution by Pepsi. As the worlds largest tea producer, Unilever will bring the brand, noesis of the tea industry and a substantial research and educatement potency to the JV Pepsi will contribute access to its extensive bottling and distribution interlock with strong customer relations (Unilever PepsiCo 2003).Customer epitomeThere are two major target markets for ready-to-drink sparkler tea. One group is the consumers on the go. These are the employees, students, and other consumers who lead a busy lifestyle. The hectic American lifestyle demands for optimize productivity with less(prenominal)er time- consumption. Thus, in that respect is a need for products that are accessible and readily purchasable. Convenience has dominated the market, particularly the victuals and beverage industry.The other group is made up of health conscious consumers, specifically the baby boomers who patronize anything healthy. The positive reviews as well as the studies on the benefits of tea imbibing have stirred an by-line in tea drinking.Representing ab turn out 10 percent of the world market for tea (Wikipedia 2007), Lipton ice tea is poised to improve its customer base by means of a joint agreement with PepsiCo and aggressive marketing strategy.Recent handle (Winslow 2006) that the main factor for the improving market performance of Lipton ice tea is its health benefits. Consumers believe that tea is very good for the body thus, it is more logical to drink more tea and less soda step to the fore and other drinks. Consumers dr ink Lipton tea because of its beneficial effects to ones health. Consumers consider drinking Lipton as a healthy habit. The 100 percent Natural Tea and 150 mg of protective natural antioxidants has made Lipton tea a major participant in the global tea market.Many tea drinkers choose Lipton because it is really inexpensive and you can get it just about anywhere. It is surprising that more people do not drink tea, as they would longer, happier and healthier lives if they did (Winslow 2006).Furthermore, some customers think that taking anti-oxidants are healthy, thus, customers drink a couple of gallons per week Tea makes you look younger too and gives you aught aswell. You know it also costs a lot less to drink tea too, for 100 bags at $2.50 lasts you about 3- weeks. 2-quarts per day are possible when it is really hot out, of course it varies with the drinker (Winslow 2006).Recognizing that majority of Lipton ice teas consumers are the health-conscious and on- the-go drinkers, Lipton continues to build its product lines to make it more convenient, accessible and health-appealing to consumers. snitch Analysis and PositioningLipton ice tea is produced to make it great tasting and good for consumers because it is rich in protective antioxidants (Unilever 2007). Lipton ice tea is marketed globally as the perfect drink for active, healthy lifestyle (Unilever 2007). It is available in 16 oz plastic bottles with select pure tones sold in six-pack cases. Flavors available are scratchd tea briskened Lightly sweetened iced teaIced tea Unsweetened Tea with no sugar and no added flavorsIced tea with lemon yellow Sweetened iced tea with a twist of citrus flavor Iced tea with Raspberry Sweetened iced tea with raspberry flavor Iced tea with dishful Sweetened iced tea with peach flavorIced tea nutrition Sweet Tea Lightly sweetened with Splendid and no caloriesIced tea Diet Lemon Lightly sweetened with a hint of lemonIced tea Extra Sweet Very sweet iced tea, marke ted as Southern drift in some areasHalf Half Half sweetened ice tea and half lemonadeDiet green tea with Mixed cull Mellow tea diet and lightly flavored with mixed berry(Wikipedia 2007 Unilever 2007).The encase and marketing strategy for Lipton ice tea is a reflection of Unilevers squelch for consumer welfare and sustainable development. To meet the growing demand for ice tea, Lipton continues to develop new products through its research and development department. New flavors are creation added to cater to changing and adventurous tastes of consumers.More importantly, the Unilever-PepsiCo ensures that Lipton ice tea continues to fat its niche in the global market. According to Patrick Cescau, director of Unilever FoodsWe Unilever have a strong presence in the developing and emerging markets yet there is plenty of white space to move into. These markets are the next in our planned rollout and we see Pepsi as the best partner to help us achieve this. This new joint venture m arks a sincerely yours significant step in the expansion of the brand, bringing it within the reach of many millions of new consumers.(Unilever PepsiCo 2003).Moreover the alliance between Unilever and PepsiCo is expected to modify Lipton to strengthen its global position. At the same time, we are rounding out our portfolio with a strategic partnership in one of the fastest growing beverage segments and providing consumers with Lipton, the world leader in tea. (Unilever PepsiCo 2003).Direct Competitor AnalysisOne of the major competitors for Lipton in the world ice tea market is Nestlerecreation Company, maker of Nestea Ice Tea, well-known competitor for Lipton ice tea. Like Lipton-Unilever, Nestle Refreshment Company has forged agreement with another(prenominal) soda manufacturer, Coca locoweed, to form the Coca sens/Nestle Refreshment Company (Sturdivant1992). Nestles alliance with Coca Cola has the same purpose as the Unilever PepsiCo joint agreement global distribution.The st rong presence of Coca Cola/Nestle ice tea in the United States and some part of the globe remains a threat to the goals of Unilever PepsiCo to make Lipton the most dominant allele player in the global ice tea market.Coca Cola/Nestle has two major products Nestea sweetened with natural lemon flavor and diet Nestea with natural lemon flavor. Both are available in 12 ounce cans and in 16 ounce wide lecture glass bottles. In addition to the cans and bottles, Nestea is available in refrigerated cartons (as in milk cartons) in the refrigerated sections of grocery stores and convenience stores. The tea is preservative free and made from a brewed product getting evenn back down to a tea powder.While Nestle Coca Cola continues to develop the forwarding and marketing strategies for Nestea Ice Tea, there are no new announcements of impending new products or new flavors of ice tea to be developed soon.There is a limited flavor of Nestea Ice Tea which is basically the original ice tea flavo r. The company has not shown interest to capture the emerging demand for healthy ready-to-drink ice tea products. This can be a good opportunity for Unilever PepsiCo to exploit. Lipton Ice Tea can continue to expand its market niche by capturing the growing market for healthy ready-to- drink ice tea. Unilever PepsiCo can exploit the limited flavors of Nestea Ice Tea. Recommendations/ConclusionsWith the expected growth of the billion dollar ready-to-drink ice tea market, Lipton Ice Tea is poised to capture a bigger share of the market with an aggressive marketing strategy from packaging to advertising.Short Term Goals modify market presence by 20% Short-Term Objectives1) Aggressive Marketing Strategy Unilever can take advantage of the positive press on the health benefits of tea to boost the sales of its ice tea product line. The company can use recent studies on the health benefits of tea as the basis of its press releases and advertising campaigns.2) Improve Packaging Currently, the Lipton Ice Tea are available globally in two sizes the 16-oz bottle and 2 liter bottle. Unilever can come up with other packaging sizes to ensure that consumers will have other choices and that Lipton Ice Tea will be easily and readily available to consumers.3) Improve Shelf presence Unilever PepsiCo can make a deal with retailers ensure retail ledge space and prominent positioning for Lipton Ice Tea. Although an average shopper may not notice what brands are positioned in prominent places on shelves or how frequently room is allotted to each manufacturer, shelf space and positioning as make or break factors in introducing new products (Sturdivant 1992).Long-Term Goals knowledge base Number One ready-to-drink ice teaLong-Term Objectives4) Product pattern Unilever PepsiCo must continue its innovative research and development strategy to come up with new flavors and products. Unilever has extensive research facilities on product improvement. The company can use its resource s and professional expertise to come up with new flavors that will suit the continuous demand for healthy ready-to-drink ice tea.With aggressive marketing strategy and product positioning, Lipton Ice Tea is poised to take the global lead in ready-to-drink ice tea industry.